Transmission Investment in Competitive Power Systems : Decentralizing decisions in Argentina
Recent power outages in Argentina are largely the result of transmission problems that could be solved by more investment. Private concessionaires now operate the main and regional networks, but they are under no obligation to expand capacity. In a...
| Main Authors: | , |
|---|---|
| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1999/09/12119923/transmission-investment-competitive-power-systems-decentralizing-decisions-argentina http://hdl.handle.net/10986/11466 |
| Summary: | Recent power outages in Argentina are
largely the result of transmission problems that could be
solved by more investment. Private concessionaires now
operate the main and regional networks, but they are under
no obligation to expand capacity. In a decentralized
electricity market such as Argentina's the key to a
successful transmission investment policy is coordination
among the parties involved. Without coordination, an
investment project in one site might affect or even disrupt
power flow in another. But user coalitions are difficult to
set up because of high transaction costs and in the
Argentine system, because investment mechanisms do not
provide a clear allocation of property rights to private
investors. Investment decision making for capacity expansion
is centralized, but prolonged congestion indicates that the
process is not working efficiently. Argentina is searching
for a decentralized solution. This note outlines the options
for its high-voltage network and proposes a solution for the
regional grids. |
|---|